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Carl on 21 May 2011
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RolStoppable said:
pitzy272 said:

A lot of people are saying Microsoft will drop price as soon as Sony does; but, Microsoft just recently redesigned and added features to the 360 (wifi, etc.). I would think this would make it more difficult for M$ to drop price whenever they so please, bc the system is seemingly more expensive now.

I remember Pachter and others said the same thing back in 2009 when the ps3 pricedrop was rumored. But M$ never did, did they? Didn't they just phase out their mid-level $299 SKU and bring down the $399 SKU to $299? Thus, not really a (true) price drop.

With the recent redesign, can M$ drop the 360's price as readily as some make it seem?

Yes, they can. The 360 is full of tech that is cheap to produce by now, so it won't be an issue for them to drop the price. Also, redesigns usually result in lower production costs, not higher ones.

The reason why they didn't do it in 2009 is because they felt confident and had a big enough overall lead over the PS3 (eight million, I think). The situation is different today. The PS3 continues to close the gap with every week that passes and the overall lead has shrunk to about three million units. Another price cut for the PS3 without a reaction from Microsoft would mean that Sony's console passes the 360 within a few months. If Microsoft really cares for second place, then they won't sit idle once Sony drops the price.

What I don't get is... People think it will be MS responding to the Sony pricecut.

Why? Sony have no reason at all to cut the PS3's price before the 360 cut.

PS3 is profiting. PS3 is outselling the 360. PS3 is currently "winning" the Year. There is really no reason for them to cut the price before MS do. If anything, the recent Wii pricecut could push MS to cut sooner than they wanted to. If the Wii starts stealing the Kinect customers in America, then well... Yeah, the 360 has nothing really. Japan is non existant for them and "EMEAA" is starting to fade away for them too.

Wii cut is now.
360 cut is E3.
PS3 cut is Gamescom.

Also wouldn't be surprised to see another PS3 redesign, or finally releasing a load of different colours.